Tailored for Women: Discovering the FD that Fits Your Financial Goals
When it comes to financial stability, Fixed Deposits (FDs) are of utmost importance. They offer security, reliability, growth, and financial independence. FDs for women is one such tailored solution. In a country where the financial landscape is constantly evolving, it's crucial to grasp the nuances of Fixed Deposit rates in India. Let's understand how FDs for women can be customized to better suit their needs. Additionally, let's delve into the leading Fixed Deposit rates in India.
Understanding FD for Women
Fixed Deposits serve as the cornerstone of financial portfolios. They are popular due to the guaranteed returns and capital protection they offer. Various issuers such as banks and NBFCs provide higher Fixed Deposit rates in India. FDs offer a steady stream of income, making them ideal for long-term and short-term goals.
A Fixed Deposit requires you to deposit a lump sum amount for a fixed tenor that you are comfortable with. You will receive a fixed interest rate for the duration of the tenor. Fixed Deposits are not subject to market fluctuations, hence they a safe savings tool. FDs for women emerge as a noteworthy choice. They provide features that cater to the unique financial needs and goals of women.
What are the features of a Fixed Deposit for women?
Fixed Deposits come with a variety of features. Here are some of them:
- Fixed Deposits remain unaffected by market fluctuations, ensuring the security of your money.
- Fixed Deposits offer flexible tenors. Choose between short-term or long-term options based on your financial goals.
- There are several issuers available, offering competitive rate of interest on FDs. It's advisable to compare interest rates and select an issuer that suits your needs. Some issuers, such as Shri Ram Finance, offer an additional 0.10% p.a. interest rate for women.
- You can nominate a beneficiary for your Fixed Deposits, facilitating hassle-free fund transfer.
- Opting for a tax-saving FD enables you to claim a tax exemption under Section 80C of the Income Tax Act, 1961. Allowing to claim a deduction of up to ₹11.5 lakhs.
- You begin your savings journey with a booking amount as low as ₹1,000. This minimum booking amount differs from one issuer to another. A minimum booking categorises Fixed Deposits as an accessible savings tool.
- Most banks and NBFCs offer an option to auto-renew Fixed Deposits. This feature provides investors with the convenience of continuing their savings upon maturity.
What are the benefits of a Fixed Deposit for women?
In a world where women play multifaceted roles as caregivers and professionals, Fixed Deposits offer a sense of security. Here are some of the benefits:
- Cumulative FDs offer compounding interest, allowing your interest to earn interest.
- The process for applying for an FD is simple and straightforward. Majority of issuers initiate this process online.
- You have the option to liquidate your Fixed Deposit if you need funds urgently.
- Enjoy a higher interest rate compared to a standard savings account.
- Opt for an overdraft facility against your Fixed Deposit in case of emergencies.
How to Invest?
The process for applying for a Fixed Deposit may vary among issuers. Generally, this process is simple and straightforward. Follow these steps to apply for an FD:
- Shortlist an issuer of your choice by comparing the interest rates offered. This will enable you to maximize the returns on your FD.
- Once you have selected your preferred issuer, choose a suitable tenor period. Opt for a short-term tenor for short-term goals or a long-term tenor for long-term goals.
- Understand the two types of FDs available: Cumulative and Non-Cumulative.
- Cumulative Fixed Deposits compound your interest. The interest earned and capital paid upon maturity.
- Non-cumulative Fixed Deposits pay out interest earned at regular intervals. This can be specified as monthly, quarterly, half-yearly, or annually.
- Proceed to book your Fixed Deposit by making the payment online.
Documents Required for a Fixed Deposit
If you are looking to book a Fixed Deposit it is important to keep your documents ready. The documents that you need to submit differ from one issuer to another. The issuer will gauge your credibility based on these documents.
If you are an individual looking to book a Fixed Deposit here are the documents that you will need to submit:
Proof of Identification
- PAN card
- Aadhaar card
- Driving licence
- Passport
- Passport size photograph
- Ration card
- Voted ID card
Proof of Address
- Utility bill
- Electricity bill
- Telephone bill
- Passport
- Bank statements with a cheque attached
- Any other utility bills
Compare Fixed Deposit Interest Rates offered by Banks
| Bank Name | Rate of Interest |
| Punjab and Sind Bank | 3% - 5.30% |
| ICICI Bank | 2.5% - 5.5% |
| Bank of Baroda | 2.8% - 5.25% |
| Axis Bank | 2.5% - 5.75% |
| HDFC Bank | 2.5% - 5.5% |
| State Bank of India | 2.90% - 5.4% |
Compare Fixed Deposit Interest Rates offered by NBFCs
| NBFC | Maximum Interest Rate | Maximum Tenor | Minimum Deposit |
| Bajaj Finance | 8.60% p.a. | 60 Months | ₹15,000 |
| PNB Housing Finance | 8.15% p.a. | 120 Months | ₹10,000 |
| Mahindra Finance Ltd. | 8.30% p.a. | 60 Months | ₹5,000 |
| AU Small Finance Bank | 8.50% p.a. | 120 Months | ₹1,000 |
| YES Bank | 8.00% p.a. | 120 Months | ₹10,000 |
| Ujjivan Small Finance Bank | 8.75% p.a. | 120 Months | ₹1,000 |
| Shri Ram Finance | 8.80% p.a. | 60 Months | ₹5,000 |
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